Deficit debt adjustment the difference between the general government budget balance ( government deficit or surplus ) and the change in general government debt .

There is no justification for delaying structural fiscal consolidation in countries with remaining fiscal imbalances .

Such adjustments may stem from , inter alia , changes in the amount of financial assets held by the government , revaluations or statistical adjustments . Deficit ratio ( general government ) the general government deficit is defined as net borrowing and corresponds to the difference between general government revenue and general government expenditure .

The cyclically adjusted balance in the euro area is forecast to improve in 2004 .

However , progress with structural fiscal consolidation in countries with remaining budget imbalances is generally disappointing .

However , such non cyclical effects , as quantified in this report , cannot necessarily be seen as entirely reflecting a structural change to fiscal positions , because they include the impact Box 3 of policy measures and special factors with only temporary effects on the budgetary balance .

Nearly all countries failed to meet the budget balances targeted in the stability programmes that were submitted at the end of 2001 .

The ECB conducted a first and very limited budget carry forward exercise from the financial year 2001 to the financial year 2002 .

policies . However , such non cyclical effects , as quantified in this report , cannot necessarily be seen as entirely reflecting a structural change to fiscal positions , because they will also include the impact of policy measures and special factors with only temporary effects on the budgetary balance .

Contingent liabilities government obligations that arise only upon the realisation of particular events , e.g. state guarantees .

Repayment of loans Net ( S3 ) Stock ( S2 ) Stock Stock

It can also provide more information on the contribution of fiscal consolidation efforts , as reflected in the primary balance , and on the role played by special factors as included in the deficit debt ECB Convergence Report May 2006 E X A M I N AT I O N OF ECONOMIC CONVERGENCE

Member States that have not yet achieved the medium term budgetary objective should pursue a minimum annual improvement of their cyclically adjusted balance net of one off and temporary measures .

Fiscal Analysis

The Council , when assessing the adjustment path toward the medium term budgetary objective , shall consider whether the Member State concerned pursues a minimum annual improvement of its cyclically adjusted balance , net of one off and other temporary measures and whether a larger improvement is pursued in economic good times .

As the structural deficit is projected to slightly increase in 2016 and 2017, the fiscal effort is not in line with the requirements of the Stability and Growth Pact.

Flow

Balance

Balance

Deterioration of budget balances in 2001 The average budget balance in the euro area deteriorated in 2001 for the first time since 1993 .

This resulted most notably from discretionary budgetary measures and , to a lesser extent , from the automatic response of the budget to the business cycle .

Balance as at ...

Starting Balance

Ending Balance

Opening Balance

Closing Balance

Balance after

Total Balance

Cleared balance

Previous Balance

Ending Balance

Cleared Balance

Minimum balance

Structural objectclass

The post 2010 recoveries in both countries came despite significant cuts in the structural (cyclically adjusted) budget deficit, suggesting that both recoveries occurred in the face of fiscal contraction.

Balance as at ...

Balance as at ...

Balance as at ...

Current Balance

Opening balance

Register ending balance

Balance

Fiscal and structural policies

Article 15 Budgetary procedure 15.1 .

During the 1990s a pattern of initially sharply deteriorating and subsequently improving outturns can be observed in the budget balanceto GDP ratio .